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1 Half Year 2018 MANAGEMENT PRESENTATION

MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

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Page 1: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

1Half Year 2018MANAGEMENT PRESENTATION

Page 2: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

2

Disclaimer

This document is for information purposes only and shall not be treated as giving any investment advice and/or recommendation whatsoever. This presentation and any information (written or oral) provided to youdoes not constitute an offer of securities, nor a solicitation for an offer of securities, nor a prospectus or advertisement or a marketing or sales activity for such securities. This presentation is not directed to, orintended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution or use would be contrary to law orregulation or which would require any registration or licensing within such jurisdiction.

The shares of KTM Industries AG (the “Company”) have not been registered under the U.S. Securities Act of 1933 (the “Securities Act”) nor in Canada, U.K. or Japan. No securities may be offered or sold in theUnited States or in any other jurisdiction, which requires registration or qualification. These materials must not be copied or otherwise distributed to “U.S. persons” (according to the definition under Regulation S ofthe Securities Act as amended from time to time) or publications with general circulation in the United States. The circulation of this document may be restricted or prohibited in certain jurisdictions.

For the United Kingdom: This presentation and related material (these “Materials”) are for distribution only to persons who are members of KTM Industries AG falling within Article 43(2) of the Financial Servicesand Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”) or who (i) have professional experience in matters relating to investments falling within Article 19(5) of theFinancial Promotion Order), (ii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) are outside the United Kingdom,or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale ofany securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). These Materials are directed only at relevant persons andmust not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which these Materials relate is available only to relevant persons and will be engaged in onlywith relevant persons.

Certain statements contained herein may be statements of future expectations and other forward-looking statements, which are based on management's current views and assumptions and involve known andunknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-lookingby reason of context, words such as “may”, “will”, “should”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” and similar expressions typically identifyforward-looking statements.

By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As such, noforward-looking statement can be guaranteed. Undue reliance should not be placed on these forward-looking statements. Many factors could cause our results of operations, financial condition, liquidity, and thedevelopment of the industries in which we compete, to differ materially from those expressed or implied by the forward-looking statements contained herein.

Subject to applicable securities law requirements, we disclaim any intention or obligation to update or revise any forward-looking statements set forth herein, whether as a result of new information, future eventsor otherwise.

We have exercised utmost diligence in the preparation of this presentation. However, rounding, transmission, printing, and typographical errors cannot be ruled out. We are not responsible or liable for anyomissions, errors or subsequent changes which have not been reflected herein and we accept no liability whatsoever for any loss or damage howsoever arising from any use of this document or its content or thirdparty data or otherwise arising in connection therewith.

The contents of this presentation are confidential and may not be copied, distributed, published or reproduced in whole or in part, or disclosed or distributed by recipients to any other person.

In receiving any information relating to the Company and its group, including information in this presentation, you will be deemed to have represented and agreed for the benefit of the Company (i) that you willonly use such information for the purposes of discussions with the Company, (ii) to hold such information in strict confidence and not to disclose it (or any discussions with the Company) to any person, except asmay be required by law, regulation or court order, (iii) not to reproduce or distribute, in whole or in part, (directly or indirectly) any information, (iv) that you are permitted, in accordance with all applicable laws,to receive such information, and (v) that you are solely responsible for your own assessment of the market position of the Company and that you will conduct your own analysis and be solely responsible forforming your own review of the potential future performance of the Company's business.

Page 3: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

3Source: KTM Industries AG

Highlights first half 2018 and OutlookContinuation of strong growth and market share gains

Record market share increase in all world regions in H1 2018Europe +36% (YoY)North America +6.6% (YoY)

Successful racing seasonFirst Austrian Winner of RalleyDakar

Guidance & Outlook>400,000 motorcycles in 2022 confirmed

▪ Successful launch of KTM 800cc mid-class (twin-cylinder) & Husqvarna Street

Focus on two-wheeler industry - Sale of Pankl-Group in

June 2018

Record drive continued in H1 2018126,808 motorcycles sold (+15% vs H1 2017)

Page 4: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

4

678,6

825,7896,3

1,086.3

1,223.6

1,343.0

1,533.4~ 1,570

38,947,0

59,3

93,0

112,9122,3

132,5

0

20

40

60

80

100

120

140

160

180

200

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2011 2012 2013 2014 2015 2016 2017 FC 2018

EB

IT (

in E

UR

m)

Reven

ues

(in

EU

Rm

)

Revenues Revenues Forecast EBIT

1)

1)

Source: KTM Industries AG1) See Guidance on page 27: Revenue: EUR ~1,570 million , EBIT: EUR >160 million

The leading European powered-two wheeler groupRevenue and EBIT performance

Revenue CAGR 11-18: ~ 12.7%

EBIT CAGR 11-18: ~ 22.4%

Page 5: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

5Source: KTM Industries AGNote: Simplified group structure as of June 30, 20181) PEXCO GmbH „at equity“; 50.1% are held by family Puello

The leading European powered-two wheeler groupGroup structure

PTWPowered two

wheelers

100%

100%

99.9%

74%

74%

51.7% 49.9%1)

Design, concept development & digitalization

eMobility

26%

Page 6: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

6

7,0 8,5 14,2 17,3 20,5 26,2 28,8 34,154.3

61,7 70,5 76,8 80,4 84,4 90,3 92,4

64,1 66,381,2

98,7 106,1125,7 130,6 136,7

154,3

~202

14,921,6

30,8

36,9

~78

18,2

31,0

35,9

47,1

~70

~50

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 FC 22E

Unit CAGR 93-18: ~ 15.6%

203,3

183,2

158,8

123,9

107,2

Units in k

238,3

~400

Source: KTM Industries AG

KTM units distributed by KTM

Husqvarna units distributed by KTM

KTM units distributed by Bajaj (license fee model)

Husqvarna units distributed by Bajaj (license fee model)

Motorcycle growthLong-standing growth track record with sales target of 400,000 units in 2022

~ 265,0

Page 7: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

7

Market environment HY1 2018 vs 2017Overall trends in addressable market above > 120ccm

Source: KTM Industries AG | Europe (AT, CH, DE, DK, ES, BE, FI, FR, GR, IT, NL, NO, PT, SE, UK): ACEM, national data providers (w/o MX) | US: MIC (incl. MX) | CA: MMIC (incl. MX) OC: ERG (incl. MX) Note: Calculations are Jan - Jun cumulated | Motorcycles >120cc (excl. ATVs, electric motorcycles and scooters)

Page 8: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

8Units sold in Africa & Middle East: 1,644 (- 16%)Source: KTM Industries AG

▪ India is seen as the most important future market

▪ Largest growth in absolute terms is still expected from Europe and North America

▪ Largest growth in relative terms is expected in emerging markets

▪ The revenue mix of street vs offroad is expected to shift from 50:50 in 2017 to about 70:30 in 2022

Motorcycle growth – Units sold Strong unit growth in USA and Europe in H1 2018

Page 9: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

9

Market and competitive environment June (cumulated)

Positioning and momentum

Brand performance Relative market position and momentum

KTM and Husqvarna among the biggest motorcycle manufacturersKTM and Husqvarna again leading the Performance ranking

Source: KTM Industries AG | Europe (AT, CH, DE, BE, DK, ES, FI, FR, GR, IT, NL, NO, PT, SE, UK): ACEM, national data providers (w/o MX) | US: MIC (incl. MX) | CA: MMIC (incl. MX) |OC: ERG (incl. MX) | ZA: eNaTiS (incl. MX)

Note: Calculations are Jan - Jun cumulated | Motorcycles >120cc (excl. ATVs, electric motorcycles and scooters)

Performance ranking by brand

2017 2018 Diff. to PY Change

KAWASAKI 63,362 72,052 8,690 13.7%

KTM 45,002 52,840 7,838 17.4%

HONDA 90,708 97,754 7,046 7.8%

BENELLI 1,682 6,029 4,347 258.4%

HUSQVARNA. 10,856 14,729 3,873 35.7%

SUZUKI 33,475 36,931 3,456 10.3%

APRILIA 4,081 5,544 1,463 35.9%

BETA 3,218 4,179 961 29.9%

GAS GAS 784 1,067 283 36.1%

MOTO GUZZI 3,958 4,024 66 1.6%

SHERCO 1,116 1,181 65 5.8%

MV AGUSTA 1,012 832 -180 -17.8%

DUCATI 27,195 24,860 -2,335 -8.6%

TRIUMPH 30,161 27,724 -2,437 -8.1%

YAMAHA 88,167 85,349 -2,818 -3.2%

BMW 65,516 61,846 -3,670 -5.6%

HARLEY-DAVIDSON 112,410 106,527 -5,883 -5.2%

Units ranking by brand

2017 2018 Diff. to PY Change

HARLEY-DAVIDSON 112,410 106,527 -5,883 -5.2%

HONDA 90,708 97,754 7,046 7.8%

YAMAHA 88,167 85,349 -2,818 -3.2%

KAWASAKI 63,362 72,052 8,690 13.7%

BMW 65,516 61,846 -3,670 -5.6%

KTM 45,002 52,840 7,838 17.4%

SUZUKI 33,475 36,931 3,456 10.3%

TRIUMPH 30,161 27,724 -2,437 -8.1%

DUCATI 27,195 24,860 -2,335 -8.6%

HUSQVARNA. 10,856 14,729 3,873 35.7%

BENELLI 1,682 6,029 4,347 258.4%

APRILIA 4,081 5,544 1,463 35.9%

BETA 3,218 4,179 961 29.9%

MOTO GUZZI 3,958 4,024 66 1.7%

SHERCO 1,116 1,181 65 5.8%

GAS GAS 784 1,067 283 36.1%

MV AGUSTA 1,012 832 -180 -17.8%

Ran

kin

g

Ran

kin

g

Page 10: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

10

Market and competitive environment July (cumulated)

Positioning and momentum

Brand performance Relative market position and momentum

KTM and Husqvarna among the biggest motorcycle manufacturersKTM and Husqvarna again leading the Performance ranking

Source: KTM Industries AG | Europe (AT, CH, DE, BE, DK, ES, FI, FR, IT, NL, NO, PT, SE, UK): ACEM, national data providers (w/o MX) | US: MIC (incl. MX) | CA: MMIC (incl. MX) |OC: ERG (incl. MX) | ZA: eNaTiS (incl. MX)

Note: Calculations are Jan - Jul cumulated | Motorcycles >120cc (excl. ATVs, electric motorcycles and scooters)

Performance ranking by brand

2017 2018 Diff. to PY Change

KAWASAKI 72,877 83,403 10,526 14.4%

KTM 52,913 61,570 8,657 16.4%

HONDA 105,298 113,337 8,039 7.6%

BENELLI 2,353 7,682 5,329 226.5%

HUSQVARNA 12,279 16,725 4,446 36.2%

SUZUKI 38,659 42,427 3,768 9.7%

APRILIA 4,912 6,497 1,585 32.3%

BETA 3,740 4,787 1,047 28.0%

GAS GAS 910 1,179 269 29.6%

SHERCO 1,209 1,318 109 9.0%

MOTO GUZZI 4,564 4,672 108 2.4%

MV AGUSTA 1,145 949 - 196 -17.1%

DUCATI 30,782 28,340 - 2,442 -7.9%

TRIUMPH 34,252 31,646 - 2,606 -7.6%

YAMAHA 102,102 98,917 - 3,185 -3.1%

BMW 75,195 70,455 - 4,740 -6.3%

HARLEY-DAVIDSON 131,949 123,291 - 8,658 -6.6%

Units ranking by brand

2017 2018 Diff. to PY Change

HARLEY-DAVIDSON 131,949 123,291 - 8,658 -6.6%

HONDA 105,298 113,337 8,039 7.6%

YAMAHA 102,102 98,917 - 3,185 -3.1%

KAWASAKI 72,877 83,403 10,526 14.4%

BMW 75,195 70,455 - 4,740 -6.3%

KTM 52,913 61,570 8,657 16.4%

SUZUKI 38,659 42,427 3,768 9.7%

TRIUMPH 34,252 31,646 - 2,606 -7.6%

DUCATI 30,782 28,340 - 2,442 -7.9%

HUSQVARNA 12,279 16,725 4,446 36.2%

BENELLI 2,353 7,682 5,329 226.5%

APRILIA 4,912 6,497 1,585 32.3%

BETA 3,740 4,787 1,047 28.0%

MOTO GUZZI 4,564 4,672 108 2.4%

SHERCO 1,209 1,318 109 9.0%

GAS GAS 910 1,179 269 29.6%

MV AGUSTA 1,145 949 - 196 -17.1%

Ran

kin

g

Ran

kin

g

Page 11: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

11

Market and competitive environmentOverall trends in market size and share

▪ KTM Industries continues to gain market share in the US. These gains are mainly driven by the addition of Husqvarna to the KTM platform

▪ Despite the ongoing decline of Harley-Davidson, KTM and Husqvarna are able to gain market shares

▪ The loss in European market share in 2017 are more than offset in H1 2018

▪ Due to the introduction of EURO 5 standards in 2020, a consolidation among manufacturers is expected

Motorcycle registrations and market shares

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Market shareKTM Group Europe

RegistrationsEurope R12

Market shareKTM Group US

RegistrationsUS R12

2017

11.8%

8.4%

0,0%

2,5%

5,0%

7,5%

10,0%

12,5%

15,0%

0k

200k

400k

600k

800k

1.000k

1.200k

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Market

sh

are

Moto

rcycle

reg

istr

ati

on

s

Source: KTM Industries AG | Europe (AT, CH, DE, DK, BE, ES, FI, FR, GR, IT, NL, NO, PT, SE, UK): ACEM, national data providers (w/o MX) | US: MIC (incl. MX) | CA: MMIC (incl. MX)Note: Calculations 12 months rolling| Motorcycles >120cc (excl. ATVs, electric motorcycles and scooters)

2018

Page 12: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

12Source: KTM Industries AG

Motorcycle growth driver –KTM 800cc Mid-classLeveraging the new 800cc motor platform

KTM 790 Duke

KTM 790 Adventure

77 KWPower in KW

169 KGDry Weight

SOP 03/2018

Model Year 2019 - SOP 11/2018Production Volume 2019: ~13k units

7,8

~ 11,7

H1 2018 FC 2018

KTM 790 Duke

Units in k

Page 13: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

13Source: KTM Industries AG

Motorcycle growth driver – Husqvarna Street

Husqvarna 701 Vitpilen701 Svartpilen

Husqvarna 401 Svartpilen

SOP 04/2018SOP 2019

SOP 03/2018Transfer to India in 12/2019

Husqvarna 401 Vitpilen

SOP 03/2018Transfer to India in 12/2019

6,4

~11,5

H1 2018 FC 2018

Units in k

Husqvarna Street Models 401/701

Page 14: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

14

Husqvarna Vitpilen 701

Source: Spiegel Online: “Husqvarna Vitpilen 701 im Test”

http://www.spiegel.de/auto/fahrberichte/husqvarna-vitpilen-701-im-test-ich-will-spass-ich-geb-gas-a-1219779.html

Page 15: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

15

1.9861.842 1.841

549695 725

54

145 193

2015 2017 2018 H1

Dual brand

dealers

Husqvarna

dealers

KTM dealers

Source: KTM Industries AGNote: Chart includes subsidiary and importer dealers

Motorcycle growth driver – Dual brand dealersDual brand dealers more than tripled since 2015. 918 Husqvarna dealers by June 2018

Dual Brand Dealers

# of dealers 2,589 2,682 2,759

Page 16: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

16Source: KTM Industries AG

Motorcycle growth driver - Cooperation with Bajaj Production volume is expected to increase to over 200,000 units during the next years

43,726,5

~45

~3547,1

24,8

~70

~50

17A H1 2018 22E

51,3

KTM units distributed by KTM (joint products)

Husqvarna units distributed by KTM (joint products)

KTM units distributed by Bajaj (license fee model)

Husqvarna units distributed by Bajaj (license fee model)

~200

90,9

DUKE 125/200/390 RC 200/390

Husqvarna Vitpilen / Svartpilen 401

Pune

Units in k

Unit CAGR 17-22: ~17.1%

Page 17: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

17Source: KTM Industries AG

Motorcycle growth driver - Cooperation with Bajaj Bajaj built-up 435 KTM showrooms in India over the last 6 years

Pune

32

70

124

176

275

354

435

March 12 March 13 March 14 March 15 March 16 March 17 Actual

Number CAGR 12-18: ~54.5%

Established and growing dealer

network as strong base for the

rollout of Husqvarna street

in India

# KTM showrooms

Page 18: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

18

eMOBILITY

Page 19: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

19

PEXCO eBike

▪ Market data 2017

▪ Germany: 720,000 eBikes +19%

>> 2018: 800,000 – 900,000 units expected;

Acutal share of E in the market: 19%

>> expected longterm: 35%

▪ Austria: 120,474 +39,2% >> share 29,1%

▪ In countries like Italy, UK, Spain unit sales of

eBikes develops very rapidly; double-digit-%

growth expected

▪ Expected unit sales Pexco 2018/2019

▪ Expected unit sales in the first year 2018:

35,000 – 40,000 units (Revenue: € 35- 40m)

▪ Budget 2019: 60,000 units (Revenue: € 80m)

Market development International Roll-out Pexco 2018-2020

Source: Zweirad-Industrie-Verband http://www.ziv-zweirad.de/marktdaten/

Pexco GmbH

Planned sales launch

Q4 2019

Sales launchQ1 2019

Sales area 2018

Page 20: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

20

PEXCO eBikeHusqvarna and Raymon Model range 2019

GranUrban MountainCrossGranTourer

21 models 20 models 56 models

▪ Retail price: EUR 3,400 – 4,200 ▪ Retail price: EUR 4,400 – 6,200 ▪ Retail price: EUR 3,000 – 4,400

Source: Pexco GmbH

Page 21: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

21Source: KTM Industries AG

KTM E-Mobility Zero emission product strategy

On the market

since 2014SOP 4/2019 2020 2020/21

Market launch:

Freeride E

16kW

Sport Mini 2kW

(5 kW Top Performance)

Freeride Light

4kW

Husqvarna Scooter4kW / 11kW

▪ Retail price: EUR ~11,290 (incl. battery package EUR ~3,600)

▪ Expected retail price: EUR ~5,000

Page 22: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

22

FINANCIALSAND OUTLOOK

Page 23: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

23

FinancialsConsolidated profit & loss figures under IFRS

in EURm H1 2017 H1 2018 ∆ H1

Revenues 758.8 821.8 +8%

EBITDA 105.8 126.2 +19%

EBIT 65.8 78.4 +19%

Earnings 41.4 52.7 +27%

Earnings after minorities 23.4 33.7 +44%

EBITDA margin 13.9% 15.4% –

EBIT margin 8.7% 9.5% –

Source: KTM Industries AG

▪ Record sales of more than 126,800 motorcycles

▪ In all world regions, KTM gained significant market share

1

▪ Positive one-time effect from the sale of Pankl-Group in June 2018 of € 26.2 m

▪ The normalized EBIT - adjusted for the Pankldeconsolidation effect - of € 52.2 m is higher than planned

▪ Series launches in the first half 2018

1

2

2

▪ As a result of the sale of the Pankl-Group the number of employees at the KTM Industries-Group is lowered by 1,800

▪ KTM employed 4,334 people at the end of June 2018 (+11% without Pankl effect)

▪ About 10% of the workforce are leased employees

3

2

Employees (Headcount) 5.486 4.334 -21% 3

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24

FinancialsEBIT margin bridge

Adjusted EBIT margin H1 2017 vs H1 2018

Source: KTM Industries AG

▪ Due to moderate development in Racing the EBIT fell from

€ 9.1m to € 6.8m in the first half of the year2

28.7%

6.4%

9.5%

1.9%

0.4%

3.1%

H1 2017 H1 2018(adjusted)

H1 2018(reported)

▪ Budgeted four series launches in first half 2018

Deconsoli-dation Pankl

1

KTM PANKL

3

▪ Sale of Pankl on June 26, 2018

→ Positive deconsolidation effect from € 26.2m on Group-EBIT

in H1 2018

1

3

Page 25: MANAGEMENT PRESENTATION · Focus on two-wheeler industry - Sale of Pankl-Group in June 2018 Record drive continued in H1 2018 126,808 motorcycles sold (+15% vs H1 2017) Bildergebnis

25

FinancialsConsolidated balance sheet and cash flow figures under IFRS

1

in EURm FY 2017 H1 2018 ∆ 2017/18

Balance sheet total 1,465.2 1,425.6 -3%

Equity 528.6 490.9 -7%

Total interest bearing debt 544.0 526.6 -3%

Net working capital (NWC) 238.4 241.6 1%

Net debt 375.0 382.9 2%

Net working capital as % of sales 15.6% 15.1%1) –

Equity ratio 36.1% 34.4% –

Gearing 70.9% 78.0% –

Net debt / EBITDA 1.7x 1.6x –

Source: KTM Industries AG1) Calculated dynamically for the last 12 month2) Definition: Additions of property, plant & equipment (PP&E) and intangible assets according to the fixed assets schedule

▪ Repayment of perpetual bond reduced Equity about € 60m

1

▪ Seasonal intrayear increase of working capital2

in EURm H1 2017 H1 2018 ∆ H1

Cash flow from operating activities -8.8 -49.6 <100%

Capex2) -87.6 -96.2 +10%

Cash flow from investing activities -63.5 -38.6 -39%

2

3

▪ CAPEX driven by R&D to support high innovation rate

▪ Lower PP&E investments in 2018 after intensive investment program at the sites in last years

in EURm

8.3%

10.3%9.7%

11.5% 11.7%

H1 2014 H1 2015 H1 2016 H1 2017 H1 2018

R&D / Tooling PP&E Other Capex/sales

43.7

64.2 65.9

87.696.2

3

1

4▪ Positive cash-effect of disposal Pankl-Group on

investing cash-flow 4

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26

FinancialsImpact of the sale of Pankl-Group on the key-figures

Source: KTM Industries AG1) Calculated dynamically for the last 12 month

in EURm

PROFIT AND LOSS

H1 2018before Pankl sale

H1 2018after Pankl sale Chg.

Revenues 821.8 821.8 0.0

EBITDA 105.1 126.2 +26.2

EBIT 52.2 78.4 +26.2

EBITDA margin 12.8% 15.4% +2.6ppts

EBIT margin 6.4% 9.5% +3.1ppts

▪ Strenghtening of the balance sheet structure

▪ Due to deconsolidation of Pankl-Group Net debt, Net debt/EBITDA and Gearing improved

▪ Equity lower because perpetual bond in the amount of € 60 m was repaid as a result of cash inflow from the sale of Pankl

2

▪ Positive deconsolidation effect from the sale of the Pankl-Group of € 26.2 m included in EBIT and EBITDA

▪ Revenues and operating earnings of Pankl-Group from Jan-Jun are still contained in the Profit and Loss from H1 2018 of KTM Industries-Group

1

BALANCE SHEET

Balance sheet total 1,606.2 1,425.6 -180.7

Equity 531.3 490.9 -40.3

Total interest bearing debt 639.6 526.6 -113.0

Net working capital (NWC) 320.5 241.6 -78.9

Net debt 554.4 382.9 -171.5

Net working capital as % of sales 20.0%1) 15.1%1) -4.9ppts

Equity ratio 33.1% 34.4% +1.3ppts

Gearing 104.4% 78.0% -26.4ppts

Net debt / EBITDA 2.6x 1.6x -1.0x

1

2

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27

OutlookFinancial guidance

Short- and mid-term guidance FC 2018 2021

Revenue in EUR / Revenue growth ~ 1,570 million 9 – 11% CAGR 2018-21

Number of motorcycles sold1) ~ 265,000 >360,000 units

EBIT in EUR / EBIT margin >160 million 8 – 10%

Capex2) / sales in EUR / % ~ 165 million 8 – 10%

Net debt / EBITDA 1.0 - 1.2x < 1.0 x

ROIC 12 – 13% 10 – 12%

Dividend policy Stable and conservative payout level Stable and conservative payout level

Source: KTM Industries AG1) Including units distributed by Bajaj2) Definition: Additions of property, plant & equipment (PP&E) and intangible assets according to the fixed assets schedule

Targeted sales of more than 400,000 motorcycles1) in 2022 confirmed

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APPENDIX

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29Source: KTM Industries AGNote: As of January 2018

KTM Industries AG

Stefan Pierer

▪ CEO▪ DI

Friedrich Roithner

▪ CFO▪ Mag.

Harald Plöckinger

▪ COO▪ DI

Hubert Trunkenpolz

▪ CSO▪ Mag. Ing.

Management team and contact details

Michaela Friepeß

▪ IR▪ Mag.

KTM Industries AG

Edisonstrasse 1

4600 Wels

Austria

www.ktm-industries.com

Mag. Michaela Friepess, IR

E-mail: [email protected]

Phone: +43 7242 / 69 402 205

Contact details